Climate change and Carbon markets

While the Kyoto Protocol provided a framework for reducing the greenhouse gas emissions of industrialized nations, current climate change negotiations envisage future commitments for major CO2 emitters among developing countries. This document uses an updated version of the gtap-e general equilibrium model to analyse the economic implications of reducing carbon emissions under different carbon trading scenarios. The participation of developing countries such as China and India would reduce emissions trading costs. Impacts in Latin America would depend on whether a country is an energy exporter or importer and whether the United States reduces emissions. Welfare impacts might be negative depending on the carbon trading scheme adopted and a country s trading partners

Business · Carbon market · China · Clean Development Mechanism · Climate change · Computable general equilibrium · Developed country · Developing country · Economic growth · Economics · Emissions trading · Geography · Greenhouse gas · International economics · International trade · Kyoto Protocol · Latin Americans · Macroeconomics · Market economy · Natural resource economics · Negotiation · Political science · Welfare · Climate Change Policy and Economics · Energy, Environment, and Transportation Policies · Environmental Impact and Sustainability